A credit union cannot invest in the following types of investments:

1. Any privately issued collateralized mortgage obligation or real estate mortgage investment conduit.

2. Any zero coupon investment with a maturity date that is more than ten years from the settlement date.

3. Any mortgage servicing rights as an investment but may perform mortgage servicing functions as a financial service for a member as long as the mortgage loan is owned by the member.

4. Any stripped mortgage-backed securities, residual interests in collateralized mortgage obligations or real estate mortgage investment conduits, or residual interests in small business-related securities.

5. Any commercial mortgage-related security that is not permitted by chapter 13-03-03.

History: Effective January 1, 2007; amended effective April 1, 2022.